Canadian Manufacturers & Exporters (CME) has recently released a study on the impact of the proposed changes to the SR&ED program to the international competitiveness of the Canadian tax system. According to the study, the cost of investing in research and development will increase by 5.9% if the changes to the SR&ED program are implemented. This will Canada from 13th to 17th for tax competitiveness, on the list of nations in the Organisation for Economic Co-operation and Development (OECD).
The study points out that Canada’s manufacturing sector accounts for more than 50% of total Canadian R&D spending, and that changes to the tax system must be highly considered because of its direct impact on Canada’s abilities to attract and retain the R&D of global manufacturing companies.
